The Future of Jobs in the Age of AI: Tech Companies to Lay Off Employees Despite Being Profitable
The landscape of employment in the tech industry is undergoing a major transformation.
prativad 
The landscape of employment in the tech industry is undergoing a major transformation. In the coming years, technology companies are expected to carry out layoffs even when they are financially strong — all in the name of aligning with their AI-driven strategies.
Only AI-Aligned Employees Will Stay
Renowned tech investor and Silicon Valley veteran Om Malik believes that only those employees whose skills align with a company's AI roadmap will retain their positions. According to Malik, layoffs will no longer be tied solely to financial pressures but will become a strategic move, regardless of profitability.
In Malik’s words:
"Loyalty has become one-sided — employees are expected to be fully committed, while companies offer ‘opportunities’ only when convenient."
He explains that artificial intelligence has permanently changed the relationship between employers and employees.
Microsoft: A Case Study in Profitable Layoffs
Malik draws insight from a recent memo by Microsoft CEO Satya Nadella. In it, Nadella explained why the company carried out layoffs even though its financial performance remains strong — the reason: transformation through AI.
Nadella wrote:
"Progress is not linear — it’s dynamic, sometimes inconsistent, and always demanding. But it also presents us with an opportunity to drive greater change, lead, and make an impact."
He emphasized the importance of the company’s ability to “learn and unlearn” in this rapidly evolving era.
AI Means More Profit, Fewer Jobs
According to Malik, Nadella’s message essentially suggests that AI will make companies more profitable while reducing the need for human labor. As some employee skills become outdated, companies are choosing not to invest in retraining but instead to hire fewer workers with more relevant, AI-focused expertise.
Other Companies Are Following the Same Path
Microsoft isn't alone in this shift. In April, Duolingo announced its transition toward becoming an "AI-first" company, gradually phasing out contractors. Amazon is also rapidly expanding its use of robotics and AI, raising concerns among employees about job security.
Last week, OpenAI CEO Sam Altman warned during a conference in Washington that entire categories of jobs could disappear due to AI.
Conclusion:
The age of artificial intelligence is reshaping not just technology, but the very structure of employment. Future job security will depend not merely on technical skills but on adaptability to AI systems. For companies, this is a strategic evolution — but for employees, it's both a challenge and a wake-up call.
